To ask the Scottish Government how it plans to protect the allocation of funding to third sector organisations in its forthcoming budget. (S6O-03986)

I know and appreciate the huge importance of the third sector in delivering Scottish Government priorities across all portfolios, especially in eradicating child poverty. That is why we are committed to developing a fairer funding approach for the third sector, despite the financial constraints that we face. The Scottish Government continues to focus on building a more inclusive Scotland and investing in services that are provided by third sector organisations that help and support our communities across Scotland.

Edinburgh integration joint board officers recently proposed to end grant funding for 64 third sector organisations. Although that was not taken forward, charities still do not have funding beyond March 2025, and the board’s financial deficit remains. Those organisations provide vital services through prevention and early Intervention. Is the Cabinet secretary considering using the budget to improve the financial situation of integration joint boards, which fund those important services?

The funding that goes to the national health service and local government is the funding that then provides funding for integration joint boards. That is why we are working with local government on its settlement at the moment.

We have also, of course, already committed to providing the NHS with resource consequentials, which we have done for many years and will continue to do.

That is not to take away from some of the pressures, which I absolutely accept. I hope that Foysol Choudhury will accept that the position of those third sector organisations is not helped by the additional employer national insurance contributions that each and every one of them will have to find money for; they will have to find that money from somewhere. That is a real and present danger and problem. I hope that Foysol Choudhury will get behind our calls for the United Kingdom Government to act on that.

Does the Cabinet secretary agree with the Scottish Council for Voluntary Organisations that the financial impact on fragile third sector organisations of the increase in employer national insurance contributions, estimated at £75 million a year, will be devastating for the sector? The increase will, for example, cost the Scottish SPCA, Scotland’s oldest and largest animal welfare charity, £400,000 a year.

Does she also agree that the UK Labour Government, which has ham-fistedly imposed those additional costs, should meet them in full?

Yes, I do. That is the point that I was making to Foysol Choudhury.

Only weeks before the UK autumn statement, the UK Labour Government proclaimed a new “covenant” with civil society and the third sector, founded on the principles of

“recognition, partnership, participation and transparency”.

Despite those claims in relation to the third sector, we then saw employer national insurance contributions swiftly hiked, without, I think, a thought about the impact on charities and third sector organisations. As Kenny Gibson said, the SCVO estimates that impact to be more than £75 million.

The Chancellor has to act. We cannot have that pressure on charities, hospices and voluntary organisations; she will have to think again on that, which is what we have been urging her to do.